Answer:
$105,000
Explanation:
Given that,
Sales budget for next month = $250,000
Cost of goods sold is expected to be 40% of sales.
Beginning inventory = $20,000
Desired ending inventory = $25,000
Beginning accounts payable = $52,000
Purchases for next month;
= Cost of goods sold + Desired ending inventory - Beginning inventory
= (40% × $250,000) + $25,000 - $20,000
= $100,000 + $25,000 - $20,000
= $105,000
